Ares and PSP Deploy $2.4 Billion Toward U.S. Logistics Consolidation
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The joint venture pairs a vertically integrated operating platform with scaled institutional capital to target high-growth industrial hubs.
Ares Management Corporation (NYSE: ARES) and the Public Sector Pension Investment Board (PSP Investments) have established a joint venture to invest up to $2.4 billion in U.S. logistics real estate, as first reported by the Financial Post.
The partnership pairs PSP Investments' scaled capital with Ares Real Estate's vertically integrated logistics platform. Marq Logistics—the global platform for Ares Real Estate—will lead sourcing and manage the resulting assets.
Opinion: This structure suggests that institutional investors are increasingly prioritizing defensive, cash-flowing yields by partnering with operators capable of driving value at the asset level, rather than relying on passive exposure in a volatile market.
The venture launches with a seed portfolio of 14 properties totaling 5.2 million square feet across key U.S. hubs, specifically in California, Texas, and New Jersey.
Dave Fazekas, Head of North America Logistics in Ares Real Estate, cited the growth of e-commerce, digital infrastructure buildouts, and the acceleration of onshoring as the primary fundamentals driving the investment thesis.
Laurence Bastien, Managing Director of Real Estate Investments, Americas at PSP Investments, stated the partnership aligns with a strategy of using best-in-class operators in sectors of high conviction, noting that the U.S. logistics sector faces structurally constrained supply and durable demand.
Eastdil Secured Savills served as financial advisor, and Kirkland & Ellis LLP provided legal counsel.